Cook-Hauptman Associates, Inc.




Commission Policy For Selected Individuals

( Background Remuneration Conditions Example ¯ )

 

Background


CHA recognizes that the initiation of consulting engagements is valued, and therefore deserving of remuneration. Further, CHA wants to encourage selected individuals to take initiatives in CHA's behalf with the confidence that they will be remunerated.

Therefore, CHA adopts this commission policy for individuals who apprise CHA of a consulting opportunity and introduce a CHA principal to the decision maker authorizing the consulting.

 

Remuneration

Subject to the conditions below, the remuneration for introducing CHA to a consulting opportunity is:

  • 20% of CHA's first year's fees from the new client.


  • 15% of CHA's second year's fees.


  • 10% of CHA's third year's fees.


  • Years begin on the same month as the first full day of billable consulting.


  • CHA's fees do not include expenses, including the 6% customary burden for incidental, but undocumented, expenses (such as courier services, Internet access, long distance calls, ... ) and are dated as incurred.


  • Remuneration is due and will be paid ten days after payment by the client.


 

Conditions


The remuneration above is subject to the following conditions:

  • You have been selected by a CHA principal to participate, and that participation is active (i.e., you have not been notified otherwise).

  • It is legal and ethical to remunerate as above.


  • It is with a prospective client not already known to CHA by way of current contact or previous work.


  • The client shall encompass the organizational span of the decision maker (that is, a corporate officer spans the entire corporation, a divisional officer spans the division, a plant manager may just span one plant).


  • The billable consulting begins within nine months after the first contact with the client by a CHA principal.


  • There is only one client per individual covered by this policy, each acknowledged and accepted by return e-mail, in advance.


  • CHA reserves the right to conduct itself with the client entirely at CHA's discretion, in every respect (including follow-up and payment terms).


  • This arrangement is non-negotiable, non-transferrable and non-assignable.


  • Any dispute will be submitted to binding arbitration by the American Arbitration Association in Boston.


 

Example




 

Year 1

Year 2

Year 3

total

 

CHA's fees

$40,000

$50,000

$60,000

$150,000

 

6% Admin. burden

2,400

3,000

3,600

9,000

 

Expenses

8,123

7,654

6,789

22,566

 

 

__________

__________

__________

_________

 

Gross

$50,523

$60,654

$70,389

$181,566

 

Commissions

$8,000

$7,500

$6,000

$21,500

 

 

 

 

 

 

 




 


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http://www.cha4mot.com/works/comi_per.html as of January 20, 1998

Copyright © 1996 by Cook-Hauptman Associates, Inc.

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